RWMGX vs. SCHD

Last updated Jun 3, 2026

RWMGX (American Funds Washington Mutual Investors Fund Class R-6) and SCHD (Schwab U.S. Dividend Equity ETF) are both funds - RWMGX is a Large Cap Blend Equities fund managed by American Funds, while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Over the past 10 years, RWMGX returned 13.18%/yr vs 12.77%/yr for SCHD. Their correlation of 0.88 suggests significant overlap in exposure. RWMGX charges 0.27%/yr vs 0.06%/yr for SCHD.

Performance

RWMGX vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds Washington Mutual Investors Fund Class R-6 (RWMGX) and Schwab U.S. Dividend Equity ETF (SCHD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RWMGX achieves a 5.60% return, which is significantly lower than SCHD's 19.01% return. Both investments have delivered pretty close results over the past 10 years, with RWMGX having a 13.18% annualized return and SCHD not far behind at 12.77%.

RWMGX

• 1D: -0.29%
• 1M: 1.84%
• YTD: 5.60%
• 6M: 6.23%
• 1Y: 18.11%
• 3Y*: 18.45%
• 5Y*: 12.17%
• 10Y*: 13.18%

SCHD

• 1D: 0.59%
• 1M: 1.60%
• YTD: 19.01%
• 6M: 20.36%
• 1Y: 28.08%
• 3Y*: 15.09%
• 5Y*: 8.49%
• 10Y*: 12.77%

*Multi-year figures are annualized to reflect compound growth (CAGR)

RWMGX vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RWMGX American Funds Washington Mutual Investors Fund Class R-6	5.60%	17.56%	19.35%	17.58%	-8.17%	28.84%	8.02%	25.78%	-5.91%	20.38%
SCHD Schwab U.S. Dividend Equity ETF	19.01%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%

Correlation

The correlation between RWMGX and SCHD is 0.54, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.54
Correlation (3Y) Calculated over the trailing 3-year period	0.68
Correlation (5Y) Calculated over the trailing 5-year period	0.80
Correlation (10Y) Calculated over the trailing 10-year period	0.85
Correlation (All Time) Calculated using the full available price history since Oct 21, 2011	0.88

Over the past year, the correlation between RWMGX and SCHD has dropped to 0.54 - well below their long-term average of 0.88, suggesting their price drivers have been diverging.

Return for Risk

RWMGX vs. SCHD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

RWMGX

RWMGX Risk / Return Rank: 40
RWMGX Sharpe Ratio Rank: 39
RWMGX Sortino Ratio Rank: 38
RWMGX Omega Ratio Rank: 39
RWMGX Calmar Ratio Rank: 35
RWMGX Martin Ratio Rank: 47

SCHD

SCHD Risk / Return Rank: 82
SCHD Sharpe Ratio Rank: 78
SCHD Sortino Ratio Rank: 87
SCHD Omega Ratio Rank: 76
SCHD Calmar Ratio Rank: 92
SCHD Martin Ratio Rank: 77

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

RWMGX vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds Washington Mutual Investors Fund Class R-6 (RWMGX) and Schwab U.S. Dividend Equity ETF (SCHD). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	RWMGX	SCHD	Difference
Sharpe ratio Return per unit of total volatility	1.82	2.57	-0.75
Sortino ratio Return per unit of downside risk	2.60	3.98	-1.38
Omega ratio Gain probability vs. loss probability	1.33	1.46	-0.13
Calmar ratio Return relative to maximum drawdown	2.28	6.17	-3.89
Martin ratio Return relative to average drawdown	9.91	15.20	-5.29
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

RWMGX vs. SCHD - Sharpe Ratio Comparison

The current RWMGX Sharpe Ratio is 1.82, which is comparable to the SCHD Sharpe Ratio of 2.57. The chart below compares the historical Sharpe Ratios of RWMGX and SCHD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	RWMGX	SCHD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.82	2.57	-0.75
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.87	0.59	+0.27
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.81	0.77	+0.04
Sharpe Ratio (All Time) Calculated using the full available price history	0.82	0.86	-0.04

Drawdowns

RWMGX vs. SCHD - Drawdown Comparison

The maximum RWMGX drawdown since its inception was -34.64%, roughly equal to the maximum SCHD drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for RWMGX and SCHD.

Drawdown Indicators

	RWMGX	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-34.64%	-33.37%	-1.27%
Max Drawdown (1Y) Largest decline over 1 year	-8.35%	-4.61%	-3.74%
Max Drawdown (3Y) Largest decline over 3 years	-14.61%	-16.13%	+1.52%
Max Drawdown (5Y) Largest decline over 5 years	-18.46%	-16.85%	-1.61%
Max Drawdown (10Y) Largest decline over 10 years	-34.64%	-33.37%	-1.27%
Current Drawdown Current decline from peak	-0.29%	-1.40%	+1.11%
Average Drawdown Average peak-to-trough decline	-3.12%	-3.32%	+0.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.92%	1.87%	+0.05%

Volatility

RWMGX vs. SCHD - Volatility Comparison

The current volatility for American Funds Washington Mutual Investors Fund Class R-6 (RWMGX) is 2.41%, while Schwab U.S. Dividend Equity ETF (SCHD) has a volatility of 2.92%. This indicates that RWMGX experiences smaller price fluctuations and is considered to be less risky than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RWMGX	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.41%	2.92%	-0.51%
Volatility (6M) Calculated over the trailing 6-month period	7.90%	7.66%	+0.24%
Volatility (1Y) Calculated over the trailing 1-year period	10.33%	10.96%	-0.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.10%	14.38%	-0.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.33%	16.72%	-0.39%

RWMGX vs. SCHD - Expense Ratio Comparison

RWMGX has a 0.27% expense ratio, which is higher than SCHD's 0.06% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

RWMGX vs. SCHD - Dividend Comparison

RWMGX's dividend yield for the trailing twelve months is around 9.86%, more than SCHD's 3.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
RWMGX American Funds Washington Mutual Investors Fund Class R-6	9.86%	10.36%	10.36%	6.42%	6.63%	6.33%	3.35%	6.91%	4.67%	7.52%	6.66%	6.55%
SCHD Schwab U.S. Dividend Equity ETF	3.26%	3.82%	3.64%	3.49%	3.39%	2.78%	3.16%	2.98%	3.06%	2.63%	2.89%	2.97%

Frequently Asked Questions

Can I hold both RWMGX and SCHD in my portfolio?

RWMGX and SCHD have a correlation of 0.54, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RWMGX or SCHD?

SCHD has higher volatility (2.92%) compared to RWMGX (2.41%). In terms of maximum drawdown, RWMGX dropped -34.64% vs SCHD's -33.37%.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.57 vs 1.82), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.